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IRS Announces Availability of Work Opportunity Tax Credit Through 2025
As appears in IRS Tax Tip 2025-60 Finding a job can be a challenge and for certain groups, it can be even harder. The Work Opportunity Tax Credit is a federal tax credit available to employers for hiring individual from certain groups who consistently face significant barriers to employment. The Work Opportunity Tax Credit is [...]
The Power of Catch-Up Retirement Account Contributions After 50
Are you age 50 or older? You’ve earned the right to supercharge your retirement savings with extra “catch-up” contributions to your tax-favored retirement account(s). And these contributions are more valuable than you may think. IRA contribution amounts For 2025, eligible taxpayers can make contributions to a traditional or Roth IRA of up to the lesser [...]
Receive $10,000 in Cash at your Business? The IRS Wants to Know About It
Does your business receive large amounts of cash or cash equivalents? If so, you’re generally required to report these transactions to the IRS — and not just on your tax return. Here are some answers to questions you may have. What are the requirements? Although many cash transactions are legitimate, the IRS explains that the [...]
Receive $10,000 in Cash at your Dealership? The IRS Wants to Know About It
Does your dealership receive large amounts of cash or cash equivalents? If so, you’re generally required to report these transactions to the IRS — and not just on your tax return. Here are some answers to questions you may have. What are the requirements? Although many cash transactions are legitimate, the IRS explains that the [...]
Beware of Potential Pitfalls When Valuing a Business under the Income Approach
Valuing a business using the income approach may seem straightforward: Estimate future earnings and apply a risk-based discount rate to calculate present value. In practice, however, it’s far more complex. Small missteps can significantly distort results, leading to values that don’t hold up in planning, negotiations or litigation. Here are three common pitfalls that experienced [...]
Payroll Tax Implications of New Tax Breaks on Tips and Overtime
Before the One Big Beautiful Bill Act (OBBBA), tip income and overtime income were fully taxable for federal income tax purposes. The new law changes that. Tip income deduction For 2025–2028, the OBBBA creates a new temporary federal income tax deduction that can offset up to $25,000 of annual qualified tip income. It begins to [...]
Run a Business With Your Spouse? You May Encounter Unique Tax Issues
Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The partnership issue An unincorporated business with your spouse is classified as a partnership for federal income tax purposes, unless you can avoid that treatment. Otherwise, you must file an annual partnership return using Form 1065. [...]
How Tariffs Could Increase Your Company’s Supply Chain Risk
Your company’s supply chain is one of the many business functions vulnerable to fraud, particularly as foreign tariffs take effect. Dishonest employees and vendors are known to have taken advantage of the COVID-19 pandemic’s supply shortages and abrupt switch to remote working. Now, tariff disruptions provide a similar opportunity for fraud perpetrators. Many businesses are [...]
Teachers and Others Can Deduct Eligible Educator Expenses This Year . . . and More Next Year and Beyond
At back-to-school time, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But teachers are also buying school supplies for their classrooms. And in many cases, they don’t receive reimbursement. Fortunately, they may be able [...]
Evaluating Marketability When Valuing Controlling Business Interests
When investing in a business, the buyer considers how easily the interest can be converted to cash. However, transferring private business interests isn’t necessarily quick or easy — even if you own the entire company or a controlling block of the outstanding shares. Here’s a closer look at how business valuation professionals address the issue [...]
New Rules Could Boost Your R&E Tax Savings in 2025
A major tax change is here for businesses with research and experimental (R&E) expenses. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) reinstated the immediate deduction for U.S.-based R&E expenses, reversing rules under the Tax Cuts and Jobs Act (TCJA) that required businesses to capitalize and amortize these costs over five years (15 years [...]
California CDTFA Updates Pub 34: Motor Vehicle Dealers (3/2025)
The California Department of Tax and Fee Administration (CDTFA) has released an updated version of Publication 34: Motor Vehicle Dealers in March 2025. This guide helps motor vehicle dealers understand and comply with California’s sales and use tax laws for vehicle sales, leases, and use. The March 2025 update incorporates recent legislative changes, including those [...]
IRS Lists FAQs on Expiration of Energy Credits and Deductions under OBBBA
As appearing in IRS Fact Sheet 2025-5 These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Accordingly, these FAQs may not address any particular taxpayer’s specific facts and circumstances, and they may be updated or modified upon further review. Because these FAQs have not been published [...]
Teacher Funded Classroom Costs Can Be Offset with Educator Expense Deduction
As appearing in IRS Tax Tip 2025-58 With back-to-school, comes potential out-of-pockets costs for educators. The Educator Expense Deduction lets eligible teachers and administrators deduct certain expenses from their taxes. Eligible educators The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide and work at least 900 hours a school [...]
No Changes to 2025 Information Returns or Withholding Tables Under OBBBA
As appears in IRS IR-2025-82 On 8/7/25, the Internal Revenue Service announced that, as part of its phased implementation of the One, Big, Beautiful Bill Act (OBBBA), there will be no changes to certain information returns or withholding tables for Tax Year (TY) 2025 related to the new law. Key points for TY 2025 relating [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
